Aerospace manufacturer’s expansion takes off

A Birmingham aerospace firm has created 20 jobs after expanding to a new site.

AE Aerospace, established in 1996, manufactures parts for Boeing, Airbus and Bombardier aircraft.

In response to an increase in demand from customers including Rolls Royce and Collins Aerospace, the business secured a £1.75m funding package from Lloyds Bank to relocate to a 16,500sq ft site in Duddeston – four times the size of its previous location – at the end of 2018 and equip it with new machinery.

The funding included a £500,000 asset finance facility to enable the business to purchase three machines to create complex components for aircrafts including rotating parts, without impacting day-to-day cashflow. The new machinery has increased the firm’s capacity by 50% and will double turnover by the end of 2020.

AE Aerospace employs 60 members of staff at its Duddeston site, including an additional ten new hires since the move, with plans to recruit ten more people by the end of 2019.

Peter Bruch, managing director at AE Aerospace, said: “The UK’s aerospace industry is the fourth-largest in the world and in the last few years, our order books have been filling up faster than you can say ‘lift off’.

“As an SME, we know it’s not always easy to meet growing demand. Thanks to the funding from Lloyds Bank, we’ve been able to increase our capacity by 50% meaning that we can take on more work for more customers. This puts us in a strong position for future growth.”

Paul Warrington, relationship director at Lloyds Bank, said: “The UK is at the forefront of the global aerospace industry and the Government recently pledged to invest around £125m in the sector to help businesses research and develop new technologies, so now is the ideal time for SMEs in the space to maximise on these opportunities. Products like asset finance can help businesses like AE Aerospace expand without impacting working capital. Its great to see this creating new employment opportunities in the region for skilled engineers and manufacturers.

“We’re committed to helping Britain prosper by supporting Midlands firms like AE Aerospace and earlier this year, we announced plans to lend up to £2.5billion to firms in the region during 2019.”